There are many decisions to make when a couple decides to divorce or separate. Where children are involved, arrangements to be agreed on regarding where they will live and how much time they spend with each parent. Where there is just the couple to consider, they may need to rearrange finances and possessions. In any scenario where there is a jointly owned property, there are considerations to be given to future living arrangements.

Often, a remortgage is needed, so that one partner retains the title deeds of the property and the other is able to move on without liability for the previously jointly-owned property. Where finances allow, this can be a fairly straightforward transaction, whereby one partner pays a sum to the other or agrees that the whole property is part of a settlement.

Frequently, financial constraints lead to a less simple scenario, whereby a full restructure of any existing mortgage lending needs to take place, to remove an ex-partner from the title deeds of the property and from the mortgage. If the remaining homeowner is able to afford mortgage payments and living expenses alone, then this simply mean a divorce remortgage, removing one partner and increasing borrowing to pay for the ex -partner’s share. If the property is included in an agreed settlement, a divorce remortgage can remove the ex-partner from the mortgage and title deeds, leaving the remaining partner as the sole homeowner, but also with sole liability for the mortgage.

However, it is not always possible to arrange a straightforward remortgage. There may be credit issues which cause difficulties for the remaining partner when approaching lenders. There may be young children involved, where the parent who is the primary carer is not working full time and may need to use maintenance income to fund mortgage payments. If there is no maintenance order and the couple are unable to agree, then funds available for mortgage payments may be finalised via the Child Maintenance Service (CSM), previously the Child Support Agency (CSA). Lenders are not always accommodating of either maintenance or CSM payments and this can cause frustration to couples who are already facing upheaval.

Another way to ensure that a partner with less financial resources can remain in their home, is for parents or, depending when the divorce or separation occurs, adult children, to act as a guarantor and assist with mortgage payments. It is often the case that the remaining partner might be able to afford basic living expenses, but may not be earning enough to stretch to paying a larger mortgage, which would release capital to pay their ex-partner for their property share.

Sometimes, the only way to ensure a settlement for both parties is to sell the previous marital or co-owned home and buy two new properties within the appropriate price range. Though there may still be the need in this instance for a guarantor, particularly if there are young children and an unemployed primary carer, this allows for a clean break.

There are many options for divorcing or separating couples to consider, though divorce mortgages or divorce remortgages offer the chance for couples who may be facing a lot of other change, to embrace a fresh start either in their current home, or in a new property.

Buy to Let mortgages have become increasingly common in recent years. Even with recent changes to tax allowances on rental income and stamp duty increases, clients are still looking to invest in property as an extra income stream. Often, second properties are purchased purely to let out to tenants who are in no way related to the landlord, in which case a standard buy to let mortgage can be granted. Buy to let mortgage lending requires that the rental income is enough to cover the buy to let mortgage payments by the lender’s required margin.

Clients may choose to not to invest in buy to let property which they cannot make use of, so may consider buying a second home for their own use as a holiday home. Often, holiday homes will be somewhere picturesque and peaceful, where clients can get away from their everyday routine and enjoy some relaxation.

For most people though, holidays and weekends away are pleasant and necessary, but can only be taken as frequently as the rest of life allows, therefore it makes sense to choose a property to let out as a holiday let. Holiday buy to let mortgages differ from buy to let mortgages, in that they assume that the property will not always be let. Unoccupied periods are simply considered void periods with a standard buy to let mortgage. No income is generated when the property is empty which may be a challenge for landlords, unless they have saved adequate funds to cover mortgage payments until the property is re-let. However, with a holiday buy to let, though the expectation is that rental income is not always consistent, when calculated across a month or a year, the income generated is usually higher than standard rent. This means that the property need not necessarily be rented, but may still generate more than adequate income to pay a holiday let mortgage, whilst making the owner a profit.

Holiday buy to let mortgages present their own challenges, since the properties may be unusual, such as a flat above commercial property in a seaside town. Though the flat can be easily let, lenders may not consider a holiday home above a shop or office to be straightforward mortgage security. Some local authorities may choose, when granting planning consent, to allow land to be developed, provided that a number of the homes being built are not occupied for the full year, so a holiday home may have restrictive clauses which mean that it has to be empty for some weeks of the year. The idea is to entice holidaymakers and tourists to the area, though lenders may be hesitant to lend since the property may be unoccupied for some of the time.

With a holiday let mortgage, it is possible to buy a holiday home which may generate good income and offers a feasible alternative to a standard buy to let purchase.